MP Bernard Jenkin has called for the advisory committee that oversees the "revolving door" between business and government to be abolished and replaced with a new system of statutory regulation.

The "opaque procedures" of the current advisory committee on business appointments (ACoBA), which is chaired by Lord Lang, should be replaced by an independent ethics commissioner with legal powers of investigation and enforceable statutory penalties, in accordance with a clear code of conduct, said the chair of the Commons public administration select committee (PASC), following its latest report.

PASC's report on Wednesday 25 July said the existing advisory committee does not help departing public officials who may need guidance about what appointments may be regarded as inappropriate for them to take up. Neither does it do anything to deter misleading and damaging mis-reporting of individual cases or is quick or robust enough in response to unjustified vilification.

ACoBA advises on applications under the business appointment rules by all former ministers and former special advisers, and former civil servants at director general or permanent secretary level.

The number of civil servants moving between Whitehall and the private sector is likely to increase as a result of the civil service reform plan. Budget cuts and structural changes will also result in a "significant number" of individuals leaving the civil service and looking for outside appointments within the next three years, according to the PASC report.

"ACoBA does what it says on the tin – it is only 'advisory' and has no statutory powers and functions to do what is increasingly expected," said Jenkin.

PASC says Acoba should be replaced with a system of clear, statutory regulation, with enforceable penalties, overseen by an independent ethics commissioner with the power to initiate his or her own investigations. "It would be also be rational to give this same commissioner responsibility for overseeing the ministerial code," said Jenkin.

Civil service reforms and the close working relationships between public servants and the private and voluntary sectors due to changes in public service provision, means the probity of officials is under public scrutiny and needs reform, he said.

Following the Barclays Libor rate-fixing scandal and G4S contracting failures, the new model also signifies the importance of ethical conduct in public office.

"The proper and ethical conduct of public office-holders is very important to the British public," said Jenkin, adding that an independent watchdog with some teeth is necessary to command their confidence.

A statutory system would also do more to protect the reputation of public officials from "savage media criticism" that causes "potentially irreversible damage to their reputations", he said.